Many things make Denmark a great destination for the few who successfully manage to immigrate and integrate. When in the country, one actually realizes that people in Denmark draw their inspiration from love of work, robust social security system, accessibility of loans, ability to afford nice things in life. With a job in Denmark and a residence permit, getting a payday loan is so easy.
If it is your first time getting into a financial situation in Denmark that necessitates taking a loan, you may feel awkward. This is a common feeling especially if top of your reasons for moving to the country is to prosper and thrive. But wait a minute, taking a loan in Denmark doesn’t necessarily mean you ain’t thriving. Actually, just ask around how many people have car loans, home loans, property loans and all kinds of borrowings around-they are so many.
Every job in Denmark comes with a well structured contract. Employers also have a duty to pay as per agreed terms and through banks. This means that tracing your regular income is stress free. So it’s easy to just pick out what works best for you.
Situations that may lead you to taking a payday loan in Denmark
You, like so many others, may think that everybody in Denmark has all the money needed to get the good things in life at all times. To your surprise, so many people living in the country and actually having well paying jobs still go for loans.
Needless to say, loans in Denmark come in different forms as credit cards, private loans or property loans. In the case of payday loans, the intention of the borrower ought to be fixing an urgent situation that can’t just wait till the next paycheck comes. It’s actually a quick, convenient loan which explains why it comes with a high interest rate .
Unlike other forms of loans such as home loans where an advisor attached to your lending institution takes you through and ensures that the loan goes to the intended use, expenditure of payday loans lies in the hands of you, the borrower.
In Denmark, people do take payday loans to solve immediate financial problems. You can take loans for car repair, hospital bills, home repairs or even electricity bills.But a good financial advisor will confirm that payday loans in Denmark need to be taken as the very last resort because they are expensive, come with short repayment periods and are likely to create habitual borrowing.
One fancy thing which is also an undoing for some people is that some payday loan lenders do not even consider one’s credit history. Even if you have a bad credit history (listed in RKI), you may still qualify for the loan. This is good especially for the individuals who are not able to borrow from the traditional financial institutions.
In addition, the loans are a relief if you have short-term cash flow problems. For instance, if you have a short-term contract and your salary is delayed, you can take the loan to bridge the gap. You can take them to pay the water bills, car insurance, and others. When you are paid, you can then pay back the loan.
The main advantage of taking the payday loans is their fast-processing time. For some, you may get your money within 30 minutes. Besides, the online application process is so short. It takes between 3 to 7 minutes. This proves their accessibility and convenience.
Things to Consider Before Taking Payday Loans in Denmark
Sometimes you’ll be so desperately in need of money and may end up going for payday loans as a quick option, But even amidst this rush and urge to get out of your situation, be careful not to be blind. Yes, the cost of living in Denmark and unexpected expenditures in Denmark may push you to the wall but be mindful that a payday loan isn’t a freebie.
Before you consider taking a payday loan;
- Ensure that you have evaluated your financial situation
- As yourself if really you’ve exhausted all the available options
- Carefully consider your repayment capacity.
- Be aware of the risks of falling into a cycle of debt.
- Read and understand the terms and condition of the loan
- Ensure that you’re acutely aware of all the fees associated with the loan
The Qualifications for the Payday loans in Denmark
Before you make an application for a payday loan, you need to meet some requirements. One thing everyone needs to clearly get is that loans in Denmark can only be given to someone who has a residence permit in the country. In short, you must have a tax obligation with a CPR number and regular income in the country to even start thinking of borrowing money.
It is no brainer than someone on a short stay Schengen visa may not be traceable by the Danish financial system. Nowonder it is a requirement that you have proof of financial ability when applying for Schengen visa of Denmark.
- Be between the ages of 18 and 65
- Have proof of income. Remember, not social benefits
- Have a valid ID, CPR number, passport, or residence permit if you are a foreigner
The Application Process of a Payday loan in Denmark
1, Fill in an online application form
Payday loan application forms are straightforward and located on the website of your chosen lending institution. The process is not long after you have gathered the documents that we mentioned above. You can do it in the comfort of your home.
2. Attach required personal details
The documentation should prove your eligibility for loans in Denmark. They typically need to clearly show your name, email, phone number, address, bank account, and employment details. After filling in, cross check and ensure that they are correct. This is because if you provide wrong information like a bank account, the money can be sent to another person. Recovering it may take time, yet you need money to solve urgent issues.
3. The lender does verification, approves and sends the loan
The lenders quickly review your application against their set criteria, They will verify your identity including employment status, age, and address. They will also check if the provided bank account is working. After verification, the payday loan provider will approve the loan. The last step involves sending you the money in the provided bank account.
Why payday Loans in Denmark may be a no go zone
Despite the benefits of payday loans in Denmark, they do come with some drawbacks. The top one is high interest rates. The interest rate makes the loans very expensive. Also, the loans can be predatory. This is because they target people who have low income. They then get trapped in a cycle of debt as they have ruthless methods of collecting the debt.
Top Payday Loan Providers in Denmark
- Ferratum
- Vivus
- Lendon
